Mish has a doozy in Service Sector ISM Back In Contraction; Stimulus Fades Already - "Not only are there no pavement fairies, there are no fairies of any kind. The idea that Keynesian work projects can stimulate the economy back to a lasting recovery is loony. Japan proved that for two decades, but Keynesian clowns still insist it's just a matter of throwing more money around until something good happens. Nothing good happened in Japan from Quantitative Easing or Keynesian stimulus efforts and nothing good will happen in the US from them either. The problem is debt and the cure is paying off that debt, not going deeper into it. In the meantime prepare for the double-dip or an economic flatline at best because that is how the signs are pointing." I'm gonna keep on hammering home this point. We are in deep shit and no one seems to really notice (or at least want to admit it). Maybe the reincarnation of a Comcastic CNBS will help the masses get back up to speed?
Both Zero Hede and Denninger have this one covered, so since we all read ZH, I thought I'd give Karl the nod on the post here. Here It Comes... (Sovereign Treasury Sales) "If Japan starts selling in size rates on the long end will go materially higher. This will whack the daylights out of the cash price for these bonds. Who else has a lot of these things? China. Stampede risk here? Yep. Danger to our government's ability to finance its profligate spending? Uh huh." This is a big deal especially with the Fed testing the repo waters. Can you say double whammy? do you blame Japan? I'm surprised that we have not seen more of this already (that we are at least aware of). Taking liquidity (the life blood) out of the markets and treasury sales at the same time would be like removing the feeding tube. Not good.
Leave it to TD and team at the almighty Zero Hedge to expose the meaningful. The Untold Story - Emergency Unemployment Compensation Claims Surge By 265k In One Week - "In light of this massive divergence in jobless trends, an eager Kool Aid drinking world is expecting Goldman's Jan Hatzius to provide a forecast (with at least 10 significant digit precision) ahead of tomorrow's NFP number. Jan, don't let the Goldman prop trading desk down!!!"
The Pragmatic Capitalist has AN INTERVIEW WITH A COMMERCIAL REAL ESTATE INSIDER - "We owe foreigners $50 trillion. The government wants to sink the dollar so that we’ll owe $25 trillion.. Longer term, it’s better to have a strong currency. But as a debtor nation, we want the dollar weak. In any event we’ll eventually be owned by foreigners. But what does Obama care if he sells out the country? The leaders are international, and they take care of themselves. Once you’re in this vicious cycle, you’re in it. The nature of the information is a problem once you’re so weak." That sums it up nicely. Can you say End Game? This was a good read coutesy of Phil's Stock World.
I am not ignoring the Bernanke hearings today. I believe that would be overkill reporting it here. What was not overkill was his hearing. IMO he got off real easy today. I believe that if some of the Senators would show some real emotion the public would love it and that would do us all some good.
Don't forget to keep an eye on the National Debt Clock.
Tomorrow morning should be interesting. If 1080 in the minis gives way get your hard hats out. I'll do a Look Into The Futures post later tonight if anything is cooking.
Have a great holiday season.